by Laetitia Volga
PARIS (Reuters) – Europe’s main stock markets are expected to see little change at the opening on Monday, as investors appear to be pausing after a sharp rebound in stocks late last week, while Saudi Arabia’s promise to cut its production next month favors the rise in crude prices.
The first indications available suggest a decline of 0.16% for the CAC 40 in Paris, 0.21% for the Dax in Frankfurt and an increase of 0.09% for the FTSE in London.
The broad European Stoxx 600 index gained 1.5% on Friday and the CAC 40 more than 1.87%, thanks mainly to the slowdown in inflation in the euro zone, the adoption of the bill on the ceiling of the US debt and speculation of a Federal Reserve status quo next week.
After reading the US jobs report in May – which showed accelerating job creation but also rising unemployment and moderating wage growth – investors continue to think the Fed might hold off. to raise rates on June 14.
However, it is not excluded that the institution will make a further increase in July, according to the FedWatch barometer.
“The rise in the unemployment rate and the slowdown in wages indicate progress in rebalancing the labor market, which is necessary to bring inflation back to target,” Goldman Sachs Asset Management said.
“We continue to expect a Fed pause until 2024, there is always a risk of another rate hike this summer in the face of the strength of the economy,” added the American bank.
VALUES TO FOLLOW:
AT WALL STREET
The New York Stock Exchange on Friday welcomed the vote by the US Congress on a bipartisan agreement on the federal debt and the employment report.
The Dow Jones index gained 2.12% to 33,762.76 points, the S&P 500 gained 1.45% to 4,282.37 points and the Nasdaq Composite 1.07% to 13,240.77.
Over the past week, they took 2.02%, 1.82% and 2.04% respectively.
The Nasdaq posted a 13-month peak in session and recorded its sixth consecutive week of gains, which had not happened to it since January 2020.
On the value side, Amazon gained 1.2% after information that the e-commerce giant is talking with telecom operators to offer low-cost mobile services in the United States.
Telecom groups Verizon, T-Mobile US and AT&T lost between 3.2% and 5.6%.
Dell (+3.98%) and Broadcom (+2.79%) advanced after their quarterly results.
IN ASIA
In Tokyo, the Nikkei gained 1.88%, to more than 32,000 points for the first time since July 1990, supported by the rise of Wall Street on Friday and by the prospect of maintaining an ultra-accommodating monetary policy by the Bank of Japan.
China’s CSI 300 index lost 0.43% as renewed tensions between Beijing and Washington in the Taiwan Strait overshadowed improving activity in the services sector.
OIL
Oil prices are rising after Saudi Arabia, the world’s largest exporter, pledged to cut production by an additional one million barrels a day in July.
“Saudi Arabia will likely continue to do whatever it takes to secure prices around $80 a barrel or higher, and take preemptive action to ensure macroeconomic concerns that could affect demand are neutralized. “, said Suvro Sarkar, at DBS Bank.
The reduction promised by Riyadh comes on top of a broader agreement reached by OPEC+ to limit supply until 2024 in a bid to boost prices.
Brent gained 1.51% to 77.28 dollars a barrel and American light crude (West Texas Intermediate, WTI) took 1.59% to 72.88 dollars.
EXCHANGES/RATES
The dollar is up slightly against other major currencies (+0.13%), including the euro, which is back below 1.07.
As for government bonds, the yield on ten-year US Treasury bonds gained nearly three basis points to 3.7216%.
(edited by Tangi Salaün)